So what does the stock market do?
What should the stock market do now? Continue down or start to recover and rise again? It's anyone's guess what will happen. But there are some clues to tell us when, whether it is the right time to sell the market.
First of all, we can look at the history of the past. We've had some previous recessions (if you like, called corrections.) Only see the market bounce and reach a higher level than before.
Is there any guarantee that this will happen again? Given the law of probability history says it will.
Emotions play a vital role in market behavior. Fear and greed are always the most important emotions at any given point in time. At this particular time fear is rampant through the market, with all eyes in the US worried about the possibility of recession
While the Australian economy is doing exactly the opposite of interest rates, To slow the economy. But no one has any notice of this. Remember that fear always leads to market decline, and greed has the opposite effect, which may lead to a rise in the market
The timing of the market is important if you want to invest in the market after bailing out. But be aware that no one can choose the exact bottom or top of the market, if they happen to do it just pure luck, nothing else.
It Never Stop I Amazed Investors can soon forget the painful lessons that the stock market starts to rise again, cautiously out of the window.
So, before entering the stock market, the first to find? Quite simply, when prices stop falling, they start to see a slight rise and fall, and then start to rise. No strict and fast rules apply to this situation. My personal use of the system consists of three things
First of all I use a trading plan that I insist on religion. (See previous article.)
The second thing I am looking for is the high and low troughs. I will explain this further.
The first is that you now see a peak above the previous peak and one above the previous peak. In other words, a row of three peaks. Each higher than the previous one.
The same rule applies to slots. Each slot is actually higher than the previous one. I again looked for three consecutive. By seeing each line three, the stock is confirmed to be in an uptrend
Of course sometimes there is no slot, the share price is just up straight. But be careful that these "shooting stars" can be as fast as the profit receiver to reverse.
Secondly, I use the law of probability
When the stock price falls, 70% of the opportunities continue to fall, 20% of the stock price down, 10% chance up.
When the stock is trailing, I use 50% chance to keep 25% down and 25% up.
I used the 70% percentage to continue to rise, 15% chance of horizontal and 15% chance of stock down.
These percentages are what I use, but of course are adapted to oneself.
There is no right or wrong time to enter the stock market. I use the system just to put my favorable odds.
It works for me
I love you,